The power crisis in China is driving aluminum alloy prices higher as supplies come under threat. China is limiting supplies of key components used across a range of industries. While aluminum mills are unlikely to go short in the U.S., prices could certainly rise. A timely post by the Financial Times covers the threat to the global auto industry as a result of the power crisis in China limiting supplies of key components used across a range of industries. But specific to the post is the making of aluminum alloys. Almost 90% of the world’s magnesium production comes from China, the Financial Times reports. The Chinese government ordered roughly 35 of its 50 magnesium smelters to close until the end of the year due to power shortages. The report quotes Barclays analyst Amos Fletcher, who said: “Thirty-five percent of downstream demand for magnesium is auto sheet — so if […]